These providers are required to adhere to the upcoming Markets in Crypto-Assets Regulation (MiCA).

Scheduled for implementation on December 30, 2024, MiCA establishes a comprehensive regulatory framework for the crypto-assets market within the EU. It aims to address challenges related to legal certainty, consumer protection, and regulatory fragmentation in the crypto-assets market and services. Firms authorized under MiCA must implement prudential safeguards using their own funds or insurance policies to cover specific risks.

MiCAssure, developed by Marsh Specialty in partnership with Lloyd’s and London market insurers, provides coverage for third-party claims stemming from misrepresentations or misleading statements, confidentiality obligations, business interruption, legal and regulatory obligations, and gross negligence in safeguarding clients’ crypto-assets and funds. The product offers protection for the risks outlined in MiCA’s prudential requirements and helps firms reduce or eliminate the need to allocate capital to meet their exposures as required by the regulation.

Rupert Poland, UK Digital Asset Leader, Marsh Specialty, said: “Regulatory advancements such as MiCA enhance the credibility of the digital asset ecosystem by offering security and stability to retail users and institutions venturing into the digital assets space, while providing robust guidance and frameworks for crypto asset service providers.”

He added: “MiCAssure not only offers clients an operational safeguard but also has the potential to free up capital and facilitate growth, making it a vital insurance and risk management solution for crypto-asset service providers operating in the EU.”